We can now do Spot Approvals on FHA Condos again!

Mortgage and Lending with Blue Water Home Loans NMLS# 166527

This is very good news!  It was a scary day in the industry when I thought FHA would do away with spot approvals.  I am glad to hear that they have returned.

Original content by Manny Alfelor / Loan Officer NMLS 545192

GOOD NEWS! See below:

HUD will allow for insuring an FHA loan on a unit within a condominium project whose FHA project eligibility has expired, provided:


1.    The case number was correctly established prior to the expiration of Condominium Project Approval, and

2.    The project has NOT been withdrawn or rejected prior to:

a.    Loan approval, and 

b.    Execution of the “Certification for Individual Unit Financing” by a company authorized representative.   See:  “Appendix B” of Condominium Project Approval and Processing Guide issued by Mortgage Letter 2011-22, and

3.    The loan is in compliance with all of HUD’s underwriting policies and procedures.


Please refer to the new Mortgagee Letter 2011-22 and the Condominium Project Approval and Processing Guide which were both issued on June 30, 2011.  These can be found as follows:



It is suggested that the lender provide a screen print reflecting the project was approved when the case number was issued. 

DISCLAIMER: All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

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